Example 1 $ $

Sales price per unit 1000

Less Varibale costs per unit
Dir material 300
Dir labour cost 205
Variable prod overhead 150
655
Contribution per unit 345

Example Margial Costing Profit Statement $ $

Sales value 212500 w1 Marginal cost of Prod
Less Marginal Cost of Sales Dir mat
Opening inventory 2150 Dir lab
Prod cost 129000 Var prod overhaed
Less closing inventory -23650
-107500
Less Other Variable costs(10%x212500) -21250
Contribution 83750
Less Fixed Costs (5000+30000) -35000
Profit 48750

EXAMPLE ABSOPTION COSTING PROFIT STATEMENT $ $

Sales value 212500
Less Absoption Cost of Sales
Opening inventroy(50*54) 2700
Prod cost(3000x54) 162000
Closing inventory(550x54) -29700 w1.
-135000 Overheads absobed
(Under)/Over absorbed overheards w1 3000 Actual Overheads incurred
Gross Profit 80500 Over
Less NON Production Overheads(5000+10%x212500) -26250
Profit 54250

EXAMPLE RECONCILIATION OF PROFITS $

Absorption costing profit 54250
Increase in inventory (500x11) -5500
Marginal costing Profit 48750
 20
15
8
43

33000
30000
3000